OH, That Actually Makes Sense…

From New Scientist:

CONJURE up an image of a financial risk-taker, and you’ll probably picture an aggressive Wall Street trader, testosterone surging as he closes the deal. But new research suggests that people with low levels of the male sex hormone are also likely to take financial risks.

Previous studies have linked high levels of testosterone to certain risk-seeking behaviours. To investigate whether financial risk-taking follows a similar pattern, Scott Huettel at Duke University in Durham, North Carolina, measured the testosterone levels of 298 people, who then took part in trials in which they chose between a fixed known reward or a gamble between getting a payout – mostly larger than the fixed reward – or nothing.

Surprisingly, the biggest risks were taken by people with very high or very low testosterone, compared with the average levels for their gender.

You know what they say about guys driving monster trucks. Now it seems we can apply the logic to the size of your broker’s yacht & dinghy (I couldn’t resist). So, after you pick yourself up off the floor from laughing, jump on over and read the rest.

(ht: Zack Miller)

Source:

Low testosterone linked with financial risk-taking – New Scientist

________________________________________________

Relevant:

The Dark Side of Freedom – The Reformed Broker (w/ Dinosaur Trader)

When your Trade goes VERY wrong (video) – I heart Wall Street


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s